Section R18-12-612. Priority of Assurance Account Payments

A.      Notice of Ranking. The Director shall determine whether it is necessary for the Department to rank applications and direct payment requests if the assurance account balance may not be sufficient to pay all approved amounts for applications and direct payment requests that are in process or anticipated to be submitted. Upon such a determination, the Department shall establish a ranking period under subsection (B). The Depart- ment shall give general notice of the ranking period and direct

scores  to  each  application   or  direct  payment  request under review:

a.         A maximum of 50 points for financial need of the eligible person, determined according to R18-12- 613;

b.        A maximum of 45 points for risk the contamination poses to human health and the environment, deter- mined according to R18-12-615; plus

c.         Five points if a delay in assurance account coverage would adversely affect a corrective action in pro- cess. Delay priority ranking points shall be awarded if the eligible person is conducting corrective action on all releases that are the subject of the application

or direct payment request that meets the require- ments of A.R.S. § 49-1005 and Article 2, and accrues any priority ranking points for financial need in accordance with R18-12-613.

2.        If the direct payment request includes costs approved under R18-12-608(B)(3)(c) that, when combined with all approved costs on all direct payment requests submitted against the approved preapproval application, exceed the total preapproved amount for that application, the Depart- ment shall assign to the direct payment request a score that is equal to the score assigned to the preapproval application, excluding deferral points accrued according to subsection (3).

3.        The Department shall add an additional two points to an application or direct payment request score each time the Department defers the application or direct payment request according to subsection (F).

D.      Ranking. During the ranking period, the Department shall rank affected applications and direct payment requests consecu- tively from the highest to the lowest total numerical score pur- suant to subsection (C) or, for applications and direct payment requests of equal score, the Department shall assign the higher priority to the application or direct payment request submitted earlier.

E.       Payment of Monies During Ranking Period. The Department shall pay available assurance account monies to each scored application and direct payment request in consecutive descending numerical order of priority in accordance with sub- section (D), until all ranked applications and direct payment requests have been paid, or until remaining available assur- ance account monies are insufficient to make payment equal to the approved amount of the next consecutively ranked applica- tion or direct payment request.

F.       Deferred Applications and Direct Payment Requests. The Department shall defer ranked applications and direct payment requests for which assurance account monies have not been paid in accordance with subsection (E).

G.      Exceptions. Notwithstanding this Section, the Department shall pay for eligible activities performed in compliance with

A.R.S. § 49-1053 in accordance with A.R.S. § 49-1053(J). Notwithstanding this Section, the Department shall pay eligi- ble attorney fees, consultant fees and costs as provided in

A.R.S. § 49-1091.01 in accordance with A.R.S. § 49-1054(F).

Historical Note

New Section made by final rulemaking at 12 A.A.R.

1611, effective June 4, 2006 (Supp. 06-2).